Solar Panel Financing
Each of the financing options below has pros and cons. However, the return on this investment for each of them will help you save money, which in turn, makes it easier to go solar. Specified terms for each of these investments will vary according to their prospective applicants. If you are interested in saving with solar, reach out to a representative today.
Making solar simple.
Option 1: Cash
This option makes the most sense for customers who can afford to pay off their solar system relatively quickly, as it allows you to maximize their savings with a minimal amount of paperwork. However, customers who prefer to spread their cost of going solar over a longer period of time may prefer our other options. Furthermore, eligibility is based on credit and income, and not all customers may qualify.
- Pros: No financing fees, minimal paperwork. Best Savings
- Cons: Must pay up front or at certain installation requirements
Option 2: Solar Loan
Homeowners looking to finance the cost over a longer period of time may be eligible for loans designed specifically for home solar installations. Summit has teamed up with the top solar loan providers to offer you loan products with terms of up to 20 years, including options to go solar for zero money down and no upfront costs, allowing you to start saving on your electricity bill immediately.
Solar loans are often the best deal for customers who wish to minimize their short-term expenditures while maximizing their long-term savings from solar. Loans allow you to lock in low monthly payments and claim benefits from tax credits and other government incentives. A study from the National Renewable Energy Laboratory estimates that loan-financed solar can save up to 30% more over the life of a solar panel than going solar via a power purchase agreement (PPA). Loans can also be attractive as our providers offer workmanship warranties and real-time performance monitoring, so you can check your system and home energy usage.
- Pros: Spread solar costs over long term, greater savings than PPA
- Cons: Higher financing costs than “cash,” higher credit requirements than PPA
Option 3: Power Purchase Agreement (PPA)
Finally, another popular way to go solar is with a power purchase agreement (PPA), also known as a Power Purchase Agreement. Under this model, the solar system on your roof is actually owned by another partner, who then provide you with solar power at a lower cost than your utility rates over a 20-year contract.
In many ways, this leasing model is similar to a solar loan, since you can realize savings from day one with little or no upfront costs. However, much like leasing a car or renting a home, your benefits over the life of your solar investment will be less than if you own your system outright. On the plus side, PPA’s are often easier to qualify for than loans, making them the best option for many customers
- Pros: Easy approval, save from day one
- Cons: Lower lifetime savings compared to loans